17 May 2016 15:22
BLACKROCK EMERGING EUROPE PLC - Portfolio UpdateBLACKROCK EMERGING EUROPE PLC - Portfolio Update
PR Newswire
London, May 16
| BLACKROCK EMERGING EUROPE PLC |
| All information is at 30 April 2016 and unaudited. |
| Performance at month end with net income reinvested |
| One | Three | One | Three | Five | *Since | ||||||||||||||
| Month | Months | Year | Years | Years | 30.04.09 | ||||||||||||||
| Sterling: | |||||||||||||||||||
| Share price | 3.4% | 20.0% | -1.6% | -10.2% | -29.9% | 57.3% | |||||||||||||
| Net asset value | 1.6% | 17.4% | -3.0% | -12.6% | -29.6% | 57.2% | |||||||||||||
| MSCI EM Europe 10/40(NR) | 1.7% | 18.1% | -7.2% | -25.6% | -34.9% | 29.9% | |||||||||||||
| US Dollars: | |||||||||||||||||||
| Share price | 5.4% | 23.9% | -6.2% | -15.4% | -38.4% | 55.6% | |||||||||||||
| Net asset value | 3.5% | 21.2% | -7.5% | -17.7% | -38.2% | 55.5% | |||||||||||||
| MSCI EM Europe 10/40(NR) | 3.6% | 21.9% | -11.5% | -30.0% | -42.8% | 28.4% | |||||||||||||
| Sources: BlackRock, Standard & Poor’s Micropal | |||||||||||||||||||
| *BlackRock took over the investment management of the Company with effect from 1 May 2009 | |||||||||||||||||||
| At month end | |||||||||||||||||||
| Net asset value – capital only: | 256.56p | ||||||||||||||||||
| Net asset value** – cum income: | 258.21p | ||||||||||||||||||
| Share price: | 229.0p | ||||||||||||||||||
| Total assets^: | £93.4m | ||||||||||||||||||
| Discount (share price to cum income NAV): | 11.3% | ||||||||||||||||||
| Gross market exposure^^^: | 109.5% | ||||||||||||||||||
| Gearing at month end: | 7.7% | ||||||||||||||||||
| Gearing range as a % of Net assets: | 0-20% | ||||||||||||||||||
| Issued Capital – Ordinary Shares^^ | 36,186,128 | ||||||||||||||||||
| Ongoing charges* | 1.3% | ||||||||||||||||||
| * Calculated as at 31 January 2016, in accordance with AIC guidelines. | |||||||||||||||||||
| ** Includes year to date net revenue equal to 1.65 pence per share. | |||||||||||||||||||
| ^ Total assets include current year revenue. | |||||||||||||||||||
| ^^ Excluding 5,400,000 shares held in treasury. | |||||||||||||||||||
| ^^^ Long positions plus short positions as a percentage of net asset value. | |||||||||||||||||||
| Sector | % Total | Country | % Total | ||||||||||||||||
| Analysis | Exposure | Analysis | Exposure | ||||||||||||||||
| Financials | 40.0 | Russia | 45.2 | ||||||||||||||||
| Energy | 21.8 | Turkey | 20.4 | ||||||||||||||||
| Information Technology | 10.0 | Poland | 12.9 | ||||||||||||||||
| Basic Materials | 8.9 | Greece | 9.0 | ||||||||||||||||
| Consumer Staples | 7.9 | Ukraine | 6.1 | ||||||||||||||||
| Consumer Discretionary | 4.9 | Kazakhstan | 3.8 | ||||||||||||||||
| Industrials | 3.3 | Romania | 1.5 | ||||||||||||||||
| Utilities | 2.8 | Lithuania | 1.5 | ||||||||||||||||
| Health Care | 0.8 | Net current liabilities | (0.4) | ||||||||||||||||
| Net current liabilities | (0.4) | ||||||||||||||||||
| ----- | ----- | ||||||||||||||||||
| 100.0 | 100.0 | ||||||||||||||||||
| ===== | ===== | ||||||||||||||||||
| Short positions | (0.0) | (0.0) | |||||||||||||||||
| Fifteen Largest Investments | |||||||||||||||||||
| (in % order of Total Market Exposure as at 30.04.16) | |||||||||||||||||||
| Total Market | |||||||||||||||||||
| Company | Region of Risk | Exposure % | |||||||||||||||||
| Sberbank | Russia | 8.2 | |||||||||||||||||
| Halk Bank | Turkey | 6.1 | |||||||||||||||||
| Gazprom | Russia | 5.8 | |||||||||||||||||
| PKO Bank Polski | Poland | 5.4 | |||||||||||||||||
| MMC Norilsk Nickel | Russia | 5.3 | |||||||||||||||||
| Novatek | Russia | 4.9 | |||||||||||||||||
| Lukoil | Russia | 4.5 | |||||||||||||||||
| Mail.Ru | Russia | 4.2 | |||||||||||||||||
| PZU | Poland | 3.9 | |||||||||||||||||
| TSKB | Turkey | 3.8 | |||||||||||||||||
| KazMunaiGas Exploration Production | Kazakhstan | 3.8 | |||||||||||||||||
| KGHM | Poland | 3.6 | |||||||||||||||||
| Coca Cola Icecek | Turkey | 3.5 | |||||||||||||||||
| OPAP | Greece | 3.5 | |||||||||||||||||
| Luxoft | Ukraine | 3.5 | |||||||||||||||||
| Commenting on the markets, Sam Vecht and Christopher Colunga, representing the Investment Manager noted; | |||||||||||||||||||
| Market Commentary | |||||||||||||||||||
| The MSCI Emerging Europe 10/40 Index returned 3.6% in April in USD terms. The Emerging Europe universe enjoyed another strong month in April. The region’s equity markets have had the strongest start to a year since 2006 and the highest degree of outperformance relative to global equities in nearly 15 years. Global macroeconomic developments helped to drive this strong performance. The US Federal Reserve held interest rates steady and struck a more dovish note than expected. Despite the lack of an agreement at OPEC’s meeting in Doha, the commodity rally continued with oil gaining nearly $8 per barrel (+20%). Russia performed strongly in this environment with the Rouble appreciating to levels last seen in November 2015. Additionally, President Medvedev passed a decree stating that state-owned companies are required to pay 50% of IFRS earnings as dividends, lifting index heavyweights Gazprom and Transneft. Turkey also finished the month in positive territory. Speculation surrounding the future of Prime Minister Davutoglu failed to fully dampen sentiment during a month which saw Turkey’s 12 month trailing current account deficit fall to a five year low. Focus on: Greek Resolution in Sight? In Greece, negotiations on the First Review of the bailout made significant progress. As always, the hardest part of the discussions is usually at the final stages, but the climate of the talks has been much more co-operative than in 2015 and market expectations have been set relatively low. Confidence is slowly beginning to return, and as a deal nears, the belief that Greece will be able to access financing from the European Quantitative Easing Program is pushing down financing costs. These developments have been positive for Greek assets and the portfolio has benefitted through the holding in Alpha Bank. We believe that Alpha bank has the strongest balance sheet position relative to its peers. In the recent sector-wide recapitalisation program, Alpha Bank had the least amount of capital to raise, and a greater proportion of private versus state capital. As a result, the bank should be able to resume its dividend payment policy sooner and we believe that there remains significant upside to the current share price. | |||||||||||||||||||
| 17 May 2016 | |||||||||||||||||||
| ENDS | |||||||||||||||||||
| Latest information is available by typing www.blackrock.co.uk/beep on the internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV terminal). Neither the contents of the Manager’s website nor the contents of any website accessible from hyperlinks on the Manager’s website (or any other website) is incorporated into, or forms part of, this announcement. | |||||||||||||||||||